Hisar Metal Industries Ltd

Hisar Metal Industries demonstrates inconsistent financial performance. While sales have shown some growth, the recent trends indicate stagnation. The compounded sales growth over 3 years is only 1%, and the TTM sales growth is also 1%. Quarterly sales have fluctuated, with a mix of positive and negative YOY sales growth percentages. The operating profit margin (OPM) has also been volatile, with a recent OPM of 8.15% in Mar 2025. Profit growth has been a significant concern, with a 3-year compounded profit growth of -34% and a TTM compounded profit growth of -51%. Recent quarterly profit growth has been negative, indicating declining profitability.

The capital efficiency and returns of Hisar Metal Industries are mixed. The Return on Capital Employed (ROCE) has fluctuated over the years, with a current ROCE of 11.19%. The company's ROCE for the last year (Mar 2025) is 9%. Return on Equity (ROE) also shows variability, with a current ROE of 11.30% and a last year ROE of 5% (Mar 2025). The cash conversion cycle has been relatively long, with the most recent figure at 163 days (Mar 2025). This indicates that the company takes a significant amount of time to convert its investments in inventory and receivables into cash.

Hisar Metal Industries exhibits a moderate level of financial leverage. The debt-to-equity ratio can be derived from the provided data, showing borrowings relative to equity and reserves. Interest coverage, calculated by dividing operating profit by interest expense, indicates the company's ability to meet its interest obligations. The dividend payout ratio reflects a portion of earnings distributed to shareholders, showing a varying commitment to returning profits. The long term borrowings has been maintained around 20, however short term borrowings are fluctuating based on need. The below table provides a more clear picture on debt management:

The shareholding pattern of Hisar Metal Industries indicates a stable promoter holding and limited institutional interest. The promoter holding has increased from 53.34% in Mar 2017 to 61.21% in Mar 2025, suggesting strong confidence from the company's leadership. Foreign Institutional Investors (FIIs) have a minimal presence, with holdings around 0.24% in Mar 2025. The public holds approximately 38.53% of the shares. The number of shareholders has fluctuated over the years, ending at 4,943 in Mar 2025. This ownership structure reflects a firm promoter base with limited influence from institutional investors.

The volatility in segment performance for Hisar Metal Industries is evident from the fluctuating quarterly sales and profit figures. Quarterly sales have varied, with YOY sales growth ranging from -24.42% to 7.10%. This inconsistency suggests that the company's revenue streams are not stable. Similarly, the YOY profit growth has fluctuated significantly, ranging from -77% to 129%. This high degree of variability indicates potential challenges in maintaining consistent financial results.

Hisar Metal Industries faces potential risks from foreign exchange and interest rate fluctuations. The company's interest expenses have shown an increasing trend, rising from ₹6 Cr in Mar 2014 to ₹9 Cr in Mar 2025. This increase in interest costs can impact the company's profitability, especially if interest rates continue to rise.